Exercise 5-32 (Algo) Product-Line Profitability; ABC [LO 5-1, 5-2,5-3, 5-5] Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line in the last few periods. Management belleves that the store can improve its profitability if SFS discontinues frozen foods. The operating results from the most recent period are: Frozen Foods Sales Cost of goods sold $ 288,000 271,000 Baked Goods $ 493,000 399,000 Fresh Produce $ 524,000 404,000 SFS estimates that store support expenses, In total, are approximately 13% of revenues. The controller says that not every sales dollar requires or uses the same amount of store support activities. A preliminary analysis reveals store support activities for these three product lines are: Activity (cost driver) Order processing (number of purchase orders) Receiving (number of deliveries) Shelf-stocking (number of hours per delivery) Frozen Baked Fresh Foods Goods Produce 11 73 92 8 69 319 5 22,000 0.1 39,000 6 78,000 Customer support (total units sold) The controller estimates activity-cost rates for each activity as follows: Order processing $ 96 Receiving per purchase order 122 per delivery Shelf-stocking 26.00 per hour Customer support 0.27 per item Required: 1. Prepare a product-line profitability report for SFS under the current costing system. 2. Prepare a product-line profitability report for SFS using the ABC Information the controller provides. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SFS under the current costing system. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%).) Frozen Food Operating income (loss) Operating margin (loss) % Baked Goods 96